Supplier Segmentation – The Tool for Differentiation and Results
Diane Bueler C.P.M., A.P.P., C.P.I.M.
Diane Bueler C.P.M., A.P.P., C.P.I.M., Commodity Manager, Watlow Electric Mfg Co, 573/406-6712; email@example.com
91st Annual International Conference Proceedings - 2006 - Minneapolis, MN
Not all suppliers are created equal. Suppliers and the material/service they supply can be in one of four quadrants: Commodity, Strategic, Standard, or Key. Their placement in this quadrant is dependant on many factors, such as spend dollars, product complexity, breadth of the supply base, and volume. Once you understand the quadrant characteristics of each supplier, you can then use the strategies and leading practices given to enhance relationships and strengthen negotiations.